Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 2, Problem 16E
The accounts in the ledger of Hickory Furniture Company as of December 31, 2019, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Prepare an unadjusted
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State which type of error it involves.
Prepare a general journal in which you correct each error. All the corrections must be made at June 30, 2019, in the business of Holmes Ltd.
1. On June 1, 2019, cash purchases of $4 000
were omitted from the accounts.
2. A computer was bought with a cheque of $50 000 on June 5, 2019. This transaction was recorded in both the Purchases and Bank accounts.
3. The Rent account and Discount received accounts were undercast by $2 000.
On October 1, 2024, Splish Brothers Company establishes a petty cash fund by issuing a cheque for $275 to Charles
Wood, the custodian of the petty cash fund. On October 31, 2024, Charles Wood submitted the following paid petty
cash receipts for replenishment of the petty cash fund when there is $22 cash in the fund:
Freight in
Supplies expense
Entertainment of clients
Postage
$35
99
74
38
Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on
October 31. The company uses a perpetual inventory system. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. List all debit entries efor credit
entries. Record journal entries in the order presented in the problem. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts.)
On October 1, Head and Heart Company's petty cash fund of $150 is replenished. The fund contains cash of $30, and receipts for supplies of $75 and postage of $45.
Prepare the journal entry to record the replenishment of the petty cash fund. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Chapter 2 Solutions
Financial Accounting
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are a common form of deposits...
Ch. 2 - State for each account whether it is likely to...Ch. 2 - State for each account whether it is likely to...Ch. 2 - Prepare a journal entry for the purchase of office...Ch. 2 - Prob. 2PEBCh. 2 - Prepare a journal entry on April 30 for fees...Ch. 2 - Prepare a journal entry on August 13 for cash...Ch. 2 - Prepare a journal entry on December 23 for the...Ch. 2 - Prepare a journal entry on June 30 for the...Ch. 2 - Prob. 5PEACh. 2 - On August 1, the supplies account balance was...Ch. 2 - For each of the following errors, considered...Ch. 2 - For each of the following errors, considered...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following errors took place in journalizing...Ch. 2 - Prob. 8PEACh. 2 - Prob. 8PEBCh. 2 - The following accounts appeared in recent...Ch. 2 - Oak Interiors is owned and operated by Fred Biggs,...Ch. 2 - Outdoor Leadership School is a newly organized...Ch. 2 - The following table summarizes the rules of debit...Ch. 2 - During the month, Midwest Labs Co. has a...Ch. 2 - Identify each of the following accounts of...Ch. 2 - Concrete Consulting Co. has the following accounts...Ch. 2 - On September 18, 2019, Afton Company purchased...Ch. 2 - The following selected transactions were completed...Ch. 2 - During the month, Warwick Co. received 515,000 in...Ch. 2 - a. During February, 186,500 was paid to creditors...Ch. 2 - As of January 1, Terrace Waters, Capital had a...Ch. 2 - National Park Tours Co. is a travel agency. The...Ch. 2 - Based upon the T accounts in Exercise 2-13,...Ch. 2 - Based upon the data presented in Exercise 2-13,...Ch. 2 - The accounts in the ledger of Hickory Furniture...Ch. 2 - Indicate which of the following errors, each...Ch. 2 - The following preliminary unadjusted trial balance...Ch. 2 - The following errors occurred in posting from a...Ch. 2 - Identify the errors in the following trial...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following data (in millions) are taken from...Ch. 2 - The following data (in millions) were taken from...Ch. 2 - Connie Young, an architect, opened an office on...Ch. 2 - On January 1, 2019, Sharon Matthews established...Ch. 2 - On June 1, 2019, Kris Storey established an...Ch. 2 - Elite Realty acts as an agent in buying, selling,...Ch. 2 - The Colby Group has the following unadjusted trial...Ch. 2 - Ken Jones, an architect, opened an office on April...Ch. 2 - Prob. 2PBCh. 2 - On October 1, 2019, Jay Pryor established an...Ch. 2 - Valley Realty acts as an agent in buying, selling,...Ch. 2 - Tech Support Services has the following unadjusted...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Buddy Dupree is the accounting manager for On-Time...Ch. 2 - Prob. 5CPCh. 2 - The following discussion took place between Tony...Ch. 2 - Prob. 7CP
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